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Showing posts with label rihanna advertising. Show all posts
Showing posts with label rihanna advertising. Show all posts

Wednesday, 27 March 2013

Brands behaving bady


It’s been another eventful week for brands across the world however no doubt the accolades for most news worthy story must belong to the Ford/WPP/Berlusconi saga. WPP’s sacking of the creative team responsible for the controversial Ford Figo advert this week led many to believe that Ford probably had little or nothing to do with the blunder.


However, despite publicly taking responsibility and punishing those who created the controversial work, it is not WPP’s brand reputation that has taken the biggest hit in the public eye. Undoubtedly as it was the car giants brand plastered all over the offending image Ford will continue to take the brunt of the negative publicity surrounding Berlusconi–gate. And maybe the criticism is justified when you consider fresh evidence that Ford Execs has signed off the creative to be entered into an awards competition before the excrement really hit the mechanical cooling device.


The hullabaloo and buzz generated from the controversy reminds The Brand Avenger of several other brands that have behaved badly in the past. For the purposes of simplicity and to ensure I have enough time to save the world from my arch nemesis ‘the reckless spend kid (with the inhuman ability to waste marketing investment on traditional, unmeasured forms of marketing- scary stuff I know)’ I will summarise three of my favourite examples…

In with the wrong crowd -Groupon

The deal model made popular by brands such as Groupon and Living Social has exploded on the scene over the last few years, no doubt helped with the increasing penetration of smartphones and app technology. Groupon’s brand image is crafted around offering customers daily savings on products, goods and services. But what happens when Groupon's brand reputation switches from connotations of 'the helping hand' to 'stabbing their customers in the back' via exaggerated offers and lack of transparency.


Groupon has quickly lost its way which is evident in declining market share and the resignation of its founding CEO. Unbelievably little is been done to manage and stabilise Groupon's brand to the extent where consumers are now voting with their wallets and looking to invest elsewhere. Groupon has to realise the consequences of its actions and work hard now to save the brand reputation through strategic marketing and company policy through revising its offer bank. It's time to reevaluate the circles of suppliers and manufacturers it chooses to hang out with and luckily for them there are plenty of marketing geeks out there in the shape out consumer behaviour consultancies who would love to embrace them into their inner circles if exchange for a look at that precious data.

The Yin and the Yang- Coca-Cola

You can't fault Coca-Cola for trying! In so many ways they are a market leader, innovative and a strong advocate for multi-channel media. They invest millions every year in marketing and are at the forefront of trying to understand social media and personalisation in greater detail. With so much momentum going for them they are undoubtedly in a real postion of power when it comes to brand reputation.

However as my old College roommate Spiderman once said after winning a position as dorm room monitor (such a geek) with great power comes great responsibility! And there is no doubting Coca-Cola should have been more responsible when it came to this year Superbowl advertising. No one is saying it wasn't a great idea to present an integrated media campaign across platforms to capture an audience and engage them on both the TV and secondary screens- But the lazy use of stereotyping and cliches when it came to the character selection no doubt marred what would have been deemed a unbelievably successful campaign. As you can see from the below article Oreo managed to get it spot on when it came to their use of instagram.

http://www.huffingtonpost.com/2013/02/04/coca-cola-super-bowl_n_2615632.html

Coca-Cola won't be too worried with the criticism as the brand damage is always carefully managed through their experienced marketing expertise. Therefore they earn the title of the Yin and the Yang as they somehow always seem to bounce back from the casual international incident.

Bad to the bone and loving it- Benetton

Benetton in the past has thrived on controversial content in its advertising campaigns clearly demonstrating the behaviour of a brand behaving badly but unlike Groupon bad in a cool way. Taking ten minutes to read an interview with the big cheese if the words of its Chairman are anything to go by will continue to portray themselves in a daring manner. Creative concepts such as the ‘kissing’ campaign where controversial images ranging from old men dressed as religious figures kissing to a black woman breastfeeding a white baby was unleashed on the public subsequently shocked and intrigued audiences across the world. The brand took a clear decision to misbehave through a campaign that would deliberately create controversy, much to the delight of Chairman Alessandro Benetton who went onto say “Of the 500m people who saw the 'kissing' campaign, more than 80%, if I remember correctly, had a positive view of what we'd done”. His interview goes a long way to demonstrate the power of behaving badly to build a brand image.


Some people believe strongly in the ethos that controversy creates cash. With that in mind you might not be surprised to find prior to this year’s Superbowl one study found controversy was actually a good thing for the buzz and value of several brands.


When talking about controversy and the benefits it can bring to brand image it has to be remembered that this is different to bad branding. Controversy is used by companies like Apple and Benetton to leverage a brand image when it is strategically essential to do so. Bad branding decisions such as lack of marketing investment and misalignment to a company mission statements is not cool and will ultimately lead to the road of ruin if something isn't done about it. It's a good job Berlusconi has got a lot of room in that boot, because he may need to fit one or two critically ill brands to the hospital if bad branding decisions aren't rectified. 

Tuesday, 12 March 2013

hip hop and brand segmentation

Since its humble origins in the the streets of New York in the 80's there is no doubt the hip hop movement has shaped the face of not only the music industry but also fashion, dance, art, so on and so forth. Not only has hip hop influenced so many different aspects of western society but it has also made companies billions of dollars. Not only has it made companies billions of dollars but it has also given The Brand Avenger many a frustrating Friday night trying to simultaneously fight crime and memorise the words of a fresh new beat, ranging anywhere from Eminem's 'lose yourself' to Mystikal's 'shake that ass'. But enough about me and back to the point- Hip hop is big business or 'bizznesss' as some in the industry would put it, therefore the branding artists have created for themselves deserve special attention.

Hip hop's growing influence as a valuable source of marketing investment is testament to a constant evolution of what it meant to be a hip hop artist over the last 30 years. If we think back to the turn of the 21st Century although there were clean signs of growth there were also considerable barriers which were decelerating the chances of an association with big companies and the mainstream. Market leaders have always spent considerable money on understanding how to appropriately market their brands and will use a number of mechanics to carefully alter brand reputation, positioning and image as they see fit. But what do you do when your cash cow is a volatile self proclaimed gangster with the tendency to occasionally start a riot in a night club every now and then?

That's right folks-  the rap industries branded talent assets was also the root cause of its constraints in realising true investment potential. Lack of diversification, controversy and unpredictability are not stable foundations for anyone to even try to build firm brand foundations on. There is no doubt hip hop stars popularity stretched far across a world of young adults but at the same time this created a scenario where hip hop brands like 2 Pac, Ja Rule, Notorious B.I.G, Eminem and Dr Dre consistently appealed to one 19-34 demographic. Simply put the industry was in danger of polarisation and completely cutting itself off from any kind of long term financial stability across other demographics.

Now you might say who cares? What's the issue with hip hop brands only appealing to a certain demographic especially when you consider how valuable that demographic is. Check out a great blog on hip hop segmentation and the power of the 19-34's across the world here.

http://www.audiblehype.com/blogs/business/2008/aug/04/the-no-bullshit-guide-to-hip-hop-demographics-part-one/

This article contains two of The Brand Avenger's all time favourite stats...

1) The collective spending power of the 19-34 year olds is $500 billion annually in the U.S. alone.

2) 37.1% of 15-25 year olds in China love hip hop, the point being that globally there is a potential audience for hip hop in China of 296 million.

Powerful stuff and a great argument for focusing on one demographic across the world, especially when you consider the size of this segment in emerging markets such as China (although I would imagine censorship might play a small issue here). What is undeniable is the fact that hip hop should always see a large chunk of its sales growth attributed to the youth of the times. The themes of rebellion, partying, independence and overcoming adversity tie in well with the general state of mind of this group. Nothing wrong with that right? A significant number of entertainment companies realised a long time ago that if you are going to focus your product on one group of consumers it is best to target those with the highest levels of disposable income.

However, as I am a symbol of brand value, diversity freedom and justice let's consider the other side of the argument. One thing all big manufacturers, suppliers, retailers, and anyone who has anything to do with branding knows is that if you want to maximise your sales you have to offer a rich and diverse brand portfolio. Taking this as an universal marketing truth you could therefore argue although hip hop was successful within one demographic it was also missing out on what could truly be realised through targeting the mainstream and what comes with the mainstream... The vast majority of the corporate investment pot.

This was a legitimate issue and concern for a number of years until something amazing happened. You see through that mysterious process of human ageing the artists began to grow up, the content began to clean up and with it came opportunities for a hip hop segmentation if you like- brand diversification, mainstream acceptance and corporate investment.

Right in front of our eyes the hip hop industry has fragmented and it isn't only the hip hop artists who have benefited from the expansion.

Let's use record label The Island Def jam as an example. Now chances are you might not have heard of Def Jam. Formed as part of a merger in 1999 the entity is a relative new comer to the music scene. However, if you aren't familiar with them check out the Island Def Jam artist page to see how many of the 'products' in the brand portfolio of the company you do recognise...

http://www.islanddefjam.com/artists/default.aspx?labelID=74

Let me pick out a couple of names in case you may have missed them, specifically what I like to call the big three.

Jay-Z

Jay-Z reported earnings from 2012 was $38 million dollars. This year every major festival he will be headlining has already sold out, the key word here being 'headlining'. There is no doubt that as Jay-Z's rap content has evolved around his experiences as a 40 plus male so to has the demographic who buy his product. 10 years ago Jay-Z couldn't dream of headlining Glastonbury; now it is a regular occurrence. Add this to lucrative sponsorship deals with Duracell and Budweiser and you can begin to see how big manufacturers like P&G now use hip hop brands to engage their own consumers.

Rihanna

Rihanna earned $53 million dollars in 2012 thanks in part to a non stop touring schedule but mostly down to the spend generated from her loyal fan base of 12-30 year old male and females. Rihanna's brand is supported with a fully integrated social media strategy which last year saw her rank 2nd in social media influence. Through careful PR guidance and sublime brand management Def Jam has created a brand which can cater for a wide audience while at the same time attract engagement from all industries.

Nas

Although not a top earner Nas deserves an honourable mention as an example of a man who has evolved his brand to cater for an older audience. Songs which deal with the complication of divorce 'Bye Baby' and the difficulties which come with raising children 'Daughters' saw his album 'Life is Good' sail to number 1 in the US Billboard and has so far sold 349,000 copies across the world according to Nielsen SoundScan.

You can't easily determine how much Universal Music Group (the owners of Island Def Jam) have made over the last few years. But when you consider 6 months ago they purchased EMI for $1.6 billion let's just say it's not small change.

http://www.nytimes.com/2012/09/22/business/global/universal-takeover-of-emi-music-is-approved.html?_r=0

There is no doubt that the diversification of Universal's artist portfolio under Island Def Jam and the evolution of individual artists brands has been a major contributor to the bottom line. Whereas there will always be a fresh supply of new brands to cater for the 19-34 year olds the question now becomes will the older demographics continue to rap along with Jay-Z and wipe that dirt off our shoulders whilst grasping to our Zimmerframes in 40 years time? But then again that's more your problem. As i'm immune to ageing I've got 99 problems but getting old aint one.